The present invention relates generally to a system for classifying large volumes of raw data and, in particular, to a method and apparatus for optimally summarizing a plurality of data entries for efficient review, inspection, sorting, summarizing and reporting.
Many enterprises generate large volumes of data entries, each such entry having associated with it one or more items representing important information. Typically, larger enterprises are computerized and the data entries are inputted into a computer and then transferred to a mass storage device such as a magnetic tape for later use in various data analysis and report generating programs. For example, a receiving department or a stock room accepts a delivery of parts to be placed into inventory. At least the part number and quantity must be inputted into the computer for later use in inventory, manufacturing and accounting programs.
Various specialized computer programs have been written to organize large volumes of data entries. For example, U.S. Pat. No. 4,346,442 shows a program for processing data entries related to a securities brokerage/cash management system. In U.S. Pat. No. 4,694,397, there is shown a computer system for interfacing a banking system and a brokerage system. U.S. Pat. No. 4,506,326 discloses an apparatus and method for synthesizing a query for accessing a relational database. Of course, there are also many commercial database management programs available today. However, many specific applications have not been addressed.
For example, there appear to be few, if any, formal reports of the journal in the history of accounting. The first level of accounting data, the journal, has received little research attention. To many observers, the journal is merely a log of activity, i.e. the input data from which a ledger is derived. Other than the "debit-credit balance test" and the "does-the-account-exist test", computer systems often leave the completeness and correctness of accounting matters to auditors and accounting supervisors.
Nevertheless, journals have been an important part of auditing because the environment of accounting, internal control, is evaluated at this point. Auditors have struggled with the need for classification of the journal. They have used procedures of "read the journal" for manual systems and various scan and cross-reference techniques in computer systems. Many auditors feel that an "inspection of data" function has been lost in the volumes of data handled by computer accounting systems.
Leech, in his review of matrix accounting literature ("The Theory and Development of a Matrix-Based Accounting System", 1986), suggested that databases might overcome the problems associated with recording transactions in matrix accounting systems. Amer, Bailey and De ("A Review of the Computer Information Systems Research Related to Accounting and Auditing", 1987) reviewed computer audit literature and noted the lack of direction of research in accounting and auditing information systems. Most academic thought toward accounting-oriented databases is found in the "events accounting" literature, which seeks to expand the measurements made by accounting. The present invention involves the design and programming of a database which is expected to be useful to both the auditing and matrix schools of thought.